Sindh cinemas exempt from entertainment tax, PA told

KARACHI: The Sindh Assembly was informed on Wednesday that because of their fragile financial conditions cinemas were exempt from entertainment tax, which was mainly collected from amusement parks.

This was stated in the house by Minister for Excise and Taxation Mukesh Kumar Chawla while responding to a supplementary question of legislator Heer Ismail Soho during the question hour.

The minister informed the house that musical events and concerts were charged 10 per cent of their total income in tax though charity concerts were exempt from tax.

He said that the total entertainment tax collected from July 2008 to December 2010 was Rs66.45 million.

In his written statement regarding property tax, Mr Chawla said his department collected Rs3,398.479 million in Karachi under the head of property tax from July 2008 to December 2010. He said that 98 per cent tax collection target was achieved in 2010.

In response to a query of lawmaker Sardar Jam Tamachi Unnar regarding a survey of taxable properties, the minister said that a property survey was conducted every five years. While the exercise that started during the Musharraf regime had been completed, its second round was under way, he said.

The survey is conducted to evaluate taxable properties for the preparation of valuation tables.

Mr Chawla said that all tax collection data was being computerised and hoped that the process would complete by December 2011.

In reply to another question, Mr Chawla said that the excise department collected Rs629.706 million of motor vehicle tax by registering 140,533 vehicles between July 2008 and December 2010.

A legislator suggested registration of vehicles at showrooms, he said, adding that the proposal would be duly considered.

The minister informed the house that 185 registered hotels were paying taxes. He said Rs60.944 million was collected in this head during the last two years.

In reply to a question, the minister said the tax was collected from all hotels that were registered with the excise and taxation department.

Legislator Humera Alwani wanted to know about officers working in the excise and taxation department on deputation. The minister said no officer had been working on deputation in the department though recently two officers were transferred with their services placed at the disposal of the department by the competent authority.
Source: Dawn
Date:6/16/2011